{
    "type": "ETF",
    "ucits": true,
    "replication_method": "physical",
    "leverage": false,
    "derivatives": true,
    "swaps": true,
    "inverse": false,
    "complex_factors": [
        "Contingent Convertible Bonds (CoCos)",
        "Currency hedging via forward contracts",
        "Complex underlying index (iBoxx Contingent Convertible Liquid Developed Europe AT1 Index)"
    ],
    "classification": "complex",
    "supporting_data": "The ETF is classified as complex primarily due to its investment in Contingent Convertible Bonds (CoCos), which are inherently complex instruments with discretionary coupon payments, potential principal write-downs, and conversion features. The use of forward contracts for currency hedging introduces additional counterparty and operational risks. While the ETF uses physical replication, the underlying assets (CoCos) and the hedging strategy contribute to the overall complexity. The risk profile is further complicated by the nature of the CoCo market, which has not been tested in a systemic financial crisis, and the discretionary nature of coupon payments. The ETF's risk rating of 4 (out of 7) aligns with this complexity assessment.",
    "confidence": 90
}